Tuesday, November 12, 2013
On the business path: Retail-17
And on the other side is the elastic demand which is the demand of the goods changes due to fluctuation in price like buying a washing machine or other items which can be waited out so that the price comes down. You don’t have to buy it because it is not a necessity. Now you will have to decide which kind of items you want to sell. Other thing that you need to see is the disposable income which the people have after paying their income taxes. And here a family budgets what are the necessities and what is not and after all the necessities and expenses have been paid then you have discretionary income which people can play with like going on vacation, buy electronics or new cars, contributing extra to your retirement accounts etc. But since this economy seems to go nowhere many people have less discretionary income on their hands. But initially since you are just starting your business you should have a mix of products of both elastic and inelastic demand or if you want more security just stick with the products which has inelastic demand. Whatever you want to do you have to go through the process of all of the above that I have described you before in my previous posts. I have just scarped the surface of what it is like to have your own little business and it is just a start. The thing about displaying your products, security, hiring another employee, layout of your store, dealing with your neighboring stores and others will be dealt in the subsequent topics. Suffice it is for now to say that establishing and running a business is like no other venture you would have encountered and it is not everybody's cup of tea and not everybody is ready to make that hard work and sacrifice needed for their business to succeed.